Foreclosure settlement now billion-dollar mess

Two-thirds of victims who received poor banking service get $300 check

11:48 PM,
Jun. 25, 2013

Lawyer Peter Ticktin stands among stacks of depositions from 150 'robo-signers.' After allegations surfaced that many foreclosure documents had been improperly prepared in what became known as the 'robo-signing' scandal, bank examiners spent months reviewing the banks' departments for servicing mortgage loans and processing foreclosures. AP

Written by

Julie Schmit
| USA Today

In 2010, they lost their North Carolina home to a foreclosure they say shouldn't have happened because they were seeking a loan modification at the time. This year, they eagerly awaited their check from a big bank settlement engineered by the government to compensate millions of borrowers for past foreclosure abuses. They expected at least $6,000 or even the maximum - $125,000.

Their check arrived in April - for $800. Less than a month's rent on their apartment. ...